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Almost all major Chinese cellphone manufacturers have been investigated by Indian law enforcement agencies on the pretext of money laundering or other legal issues in the past year. Telecommunications equipment vendors, home appliance and machinery companies have also been under close scrutiny by Indian authorities.
Xiaomi India has been riding on a rough road since December 2021 after the Income Tax Department slapped a notice for tax evasion. The Chinese smartphone company is also facing some heat from the Enforcement Directorate and Directorate of Revenue Intelligence.